Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: ACCOUNTING STANDARD :: cpt :: articles on VAT and GST in India :: VAT RATES :: TDS :: VAT Audit
VAT (Value Added Tax) »
 Cenvat Credit Of Additional Duties Of Customs [Cvd] On Imported Coal
 Excise Dept puts VAT refund on fast track
 Consumer fora receive 18 VAT plaints
 Appointment of Assistant VATO - F.3(14)/Fin(Rev-I)2012-13/DSVI/334
 Bio-diesel body seeks VAT relaxation
 HC seeks Delhi, centre reply on restaurants charging excess VAT, service tax
 Shakti Autos booked for evading VAT, bogus sales
 VAT sops to IOCL Paradip refinery hits Odisha revenue growth
 Government to announce new VAT rates in October
 World Wide Gst, Vat, Sales Tax Rate
 Article on Transition Process of Registrations under VAT / Service Tax Laws to GST Law

VAT's up, sales fall 75%
July, 14th 2009

The sale of mobile handsets in Maharashtra have fallen by three-fourth in the first 10 days after the increase in value-added tax (VAT). While sales revenue was Rs 70 crore between June 1 and June 10, the figure for the corresponding period in July is Rs 16.8 crore, according to industry body Indian Cellular Association (ICA).

The state government has hiked VAT on mobile phones from 4% to 12.5% in a move that is likely to reduce its revenue from the levy by around Rs 475 crore in the next three years. According to a study by ICA, the sales decline in rural areas is as steep as 85%. Every month, a million handsets are sold in Maharashtra, the countrys largest mobile market by revenue as well as units.

"We expect sales to erode by 80% if VAT is retained at 12.5%," ICA president Pankaj Mohindroo said at a press conference in Mumbai on Monday.

Maharashtra is also India's biggest mobile market with 47 million users and monthly sales of around Rs 300 crore. Since it is the only market to impose octroi on handsets, that revenue will also go down with dwindling sales through legal channels.

"Customers will lose warranties and will reach out to the grey market for cheaper products from the Middle East. This will hurt organised retail trade and make penetration in price-sensitive rural areas impossible due to higher prices," Mr Mohindroo said.
Representatives from ICA and handset makers like Nokia and Samsung will meet senior state government officials, seeking a rollback of the VAT hike. They have already submitted a petition to chief minister Ashok Chavan.

The state expects to get Rs 370 crore as VAT from the sale of mobile handsets in the current fiscal. "However, that will not be possible in view of the steep decline in sales. Also, grey channel sales are a concern for national security and will have more impact than revenue loss," he added.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
System Testing Solution Manual Software Testing Solutions Automation Software Testing Solutions System Workflow Testing System Manual Testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions